Alibaba Enters the Aesthetic Medicine Market, Building a Live Streaming Ecosystem to Drive Industry Growth
It is unclear when it began, but the medical aesthetics industry no longer appears so “beautiful.”
According to data from Qichacha, the number of deregistered enterprises in China’s medical aesthetics industry increased significantly from 2016 to 2019,In 2018, a total of 34,508 medical aesthetics companies were deregistered, representing a 3.8-fold increase compared to 2016.By 2019, a total of 2,600 medical aesthetic hospitals had closed down throughout the year, including many large and medium-sized institutions.
Behind this, in addition to the impact of the pandemic, intensified competition in the medical aesthetics industry, and increasingly rational consumers, there are alsoPractitioners in the medical aesthetics industry place excessive emphasis on a traffic-driven strategy that relies on “blunt and aggressive” marketing tactics—such as search engine advertising and offline building advertisements—to identify potential customers, while heavily engaging in price wars to drive conversions.The direct consequence is that the medical aesthetics industry remains heavily reliant on offline operations and traffic acquisition channels, with customer acquisition costs persistently high.
The long-accumulated drawbacks were magnified by the sudden outbreak of the novel coronavirus (COVID-19) pandemic this year, leading to a severe contraction in offline business revenues within the medical aesthetics industry. “The total revenue for the first half of this year was less than one-third of that in the same period last year,” said the head of a local medical aesthetics institution in Chongqing, speaking to VCBeat.Constrained by traditional customer acquisition methods, it has become increasingly difficult to attract new customers.
Indeed, in the early stages of the medical aesthetics industry’s development, relevant institutions struggled to attract clients through brand recognition alone, thus focusing their competitive efforts on publicity and promotion. ButAs the industry matures and consumers enjoy a wider array of choices, competition among medical aesthetics institutions has shifted from battles over distribution channels and traffic acquisition to a contest for consumer mindshare.
Faced with new challenges, the medical aesthetics industry is undergoing rapid consolidation, while new business models are quickly emerging. In this process, identifying new growth drivers to restore and boost performance has become an urgent priority for every medical aesthetics institution.
New Changes Are Beginning.
“From the observations over the past year, we can senseIn addition to having increasingly high aesthetic standards, aesthetic seekers are becoming more rational and their demands are growing more diverse.“Wang Yajun, General Manager of Alibaba’s Local Services Consumer Healthcare Division, told VCBeat.”
User behavior is evolving, and customer acquisition strategies for medical aesthetic institutions must adapt accordingly.In the early days of the medical aesthetics industry, traditional offline marketing models achieved considerable success due to information asymmetry between supply and demand. However, as the market has matured and access to information has become more convenient, these original customer acquisition strategies are clearly no longer effective.
“We have been actively seeking new marketing solutions since last year,” said Zhu Juhong, General Manager of Chengdu Shengdanfu Medical Aesthetic Hospital. “Based on our trials over the past year, live streaming has delivered impressive results. Through live streaming, we have moved all front-end customer interactions for our medical aesthetic services online.”
Specifically,Doctors and nursing staff moved from the consultation desk to behind the screen, engaging directly with consumers online alongside live-streaming influencers. This enabled consumers to consult and inquire about pricing in real time, thereby reducing intermediary involvement and safeguarding the interests of both parties.
In more detail,Live streaming primarily offers three key benefits to medical aesthetics institutions。
First, it can boost sales.Zhu Juhong, General Manager of Chengdu Shendanfu Medical Aesthetics Hospital, stated thatPartnering with Alibaba for live streaming, after more than a month of live sales testing, the total number of viewers exceeded 1 million, and online transactions approached RMB 10 million.“Across more than 10 live-streaming sessions, which included influencer-exclusive streams, mixed-format broadcasts, and brand-hosted streams, the overall performance metrics exceeded expectations.”
Second, it can drive traffic.Unlike traditional media channels, live streaming enables medical aesthetic institutions to implement refined consumer operations, fostering emotional connections and enhancing user retention. By expanding their private domain traffic pools through live streaming, these institutions can reduce customer acquisition costs; as the private domain traffic pool grows, subsequent marketing expenses will be significantly lowered.
Third, promote brand marketing.By building brand images through daily social media engagement, as well as through institutional and individual physician branding, and further leveraging the influx of numerous medical aesthetics live-streaming influencers to promote sales via live broadcasts, brands can achieve an explosive surge in brand momentum. Particularly after implementing refined operational strategies, these medical aesthetics live-streaming influencers and institutional brands complement each other, creating a win-win scenario.
Notably, through live streaming, Alibaba can help merchants transition from traffic-based operations to consumer-centric operations.Because Taobao Live has opened up new consumption scenarios, where merchants sell through Taobao Live and use popularity interaction software in Taobao live rooms to bring more intuitive interactions, better customer acquisition channels, and marketing tools.
Moreover, live streaming has also expanded the reach of the consumer base seeking aesthetic treatments.Zhu Juhong discovered that after launching live-streaming sessions, the customers visiting her practice were no longer limited to those within a three-hour high-speed rail radius as before; now, even patients from areas approximately eight hours away by high-speed rail are coming specifically for her services, accounting for a significant proportion of her clientele.
“Marketing strategies in the medical aesthetics industry are shifting from competition based on text-and-image content toward video live streaming,” said Liu Jie, founder of Xiuzhu MCN. Unlike text and images, video live streaming provides prospective patients with the most intuitive experience, enabling them to gain a clear understanding of certain medical aesthetic procedures. This,It can bridge the gap between medical aesthetic institutions and users, fostering a sense of trust.
Due to the continuous promotion in the medical aesthetics industry in recent years, the user base has been long educated by medical aesthetics self-media and related institutions.Users are becoming increasingly autonomous in their pursuit of aesthetic enhancement, with a growing emphasis on personalization.and are willing to participate in the formulation of medical aesthetic treatment plans, a trend that is well served by the open nature of live streaming.
In addition to becoming more autonomous in aesthetic enhancement plans,Aesthetic seekers are now more cautious and careful about safety.A head of a medical aesthetics institution, who requested anonymity, told VCBeat that due to the small size of their clinics, they often encounter users raising “sensitive” questions during consultations, such as whether the institution is compliant with regulations. Patients also repeatedly inquire if other institutions offer similar procedures. “In such cases, as long as the prices for comparable services at larger institutions are not significantly different, patients tend to choose those larger providers. To put it bluntly, users are unable to establish sufficient trust within a short period of time.”
It is precisely in addressing these issues that medical aesthetic institutionsEngage with increasingly rational aesthetic seekers through vivid and concrete live-streaming sessions on a regular basis, to explain all aspects of the medical aesthetics industry and institutions that they are concerned about, therebyBridge the gap between institutions and users, forge strong connections, and drive tangible conversions.
When a large number of companies and institutions in an industry begin to “All in” on a specific sector, it signals that this sector is the next major growth frontier for the industry’s future development. Recently, going “All in” on live streaming has become the unified strategy adopted by numerous medical aesthetic institutions.
“Live streaming has become one of the most effective means for medical aesthetic institutions to acquire and retain customers.” stated Huaxiang, Regional Head of Local Life Consumer Healthcare at Alibaba and Head of the Medical Aesthetic Live Streaming Base.At the recently concluded Alibaba Local Life Medical Aesthetics Livestream Festival, which lasted over a month, more than 100 livestreams were held daily, generating over 300 million impressions. A cumulative total of more than 50 million users tuned in to the medical aesthetics livestream rooms, driving gross merchandise value (GMV) to exceed RMB 100 million.According to Taobao Live data,The medical aesthetics industry ranks among the top in overall live-streaming penetration across all sectors on Taobao Live, emerging as a trending category on the platform.
Among them, Chengdu Chunyu Medical Aesthetics recorded over 150,000 cumulative viewers during Alibaba’s Local Life Medical Aesthetics Livestream Festival; Chengdu Shengdanfu Medical Aesthetics achieved a single-session GMV exceeding RMB 7 million during the festival. The institution went “all in” on livestreaming, with everyone from the CEO and physicians to consultants transforming into medical aesthetics streamers to launch livestream e-commerce sales.
Unlike the recent wave of closures among medical aesthetic institutions due to operational difficulties,A cohort of institutions and individuals capable of integrating online platforms and leveraging internet tools in a comprehensive manner has undoubtedly ushered in a new era of growth.
Thus,The substantial benefits brought by live streaming have made it the preferred choice for traditional industries, including medical aesthetics, seeking transformation.and making digital tools such as live streaming and short videos gradually become the operational standard for many industries。“The rise of live streaming has significantly shortened consumers’ cognitive journey toward medical aesthetics, addressing their pain points and thereby driving a surge in e-commerce sales.“Wang Yajun stated that an increasing number of medical aesthetics practitioners will participate in the future.”
However, it is worth noting that although many practitioners in the medical aesthetics industry have recognized the opportunities, when faced with live streaming as a new competitive arena,How to Stand Out in Digital Competition: A Blind Spot for the Traditional Medical Aesthetics Industry That Has Now Become an Urgent Issue to Address。
“Digital talent, live-streaming operations management, traffic monitoring, and new user conversion methods—all of these present new challenges for us.” The head of a local medical aesthetics institution in Chongqing responded to VCBeat’s inquiry regarding its perspective on live streaming, stating, “Going from zero to one is extremely difficult. Rebuilding a team entails prohibitively high costs, and we lack the experience to evaluate potential partners effectively. Therefore, the transition will require some time.”
It is crucial to emphasize that, as medical aesthetic institutions undergo transformation toward new directions, the development and alignment of their talent workforce are particularly important. AndCurrently, the cultivation of live-streaming talent faces three major barriers.
First, the learning curve is steep.For medical aesthetic institutions, the ability to foster friendly interactions with users and build stickiness tests their live-streaming operational capabilities; while preparing scripts and driving business conversions assesses their planning and commercial prowess... Mastering each of these competencies entails a significant barrier to entry.
Second, the content is highly professional.During live streaming, conveying specialized medical aesthetics content to users in an accessible manner poses a significant test of medical professionalism. This also creates a substantial barrier for newcomers entering the field of medical aesthetics live streaming.
Third, the market remains to be improved.Currently, the medical aesthetics live-streaming sector remains in a relatively blue-ocean stage, with relevant experience yet to be fully developed and systematized. Institutions still face considerable challenges in accurately understanding user behavior and preferences.
Like this medical aesthetics clinic in Chongqing, many medical aesthetics companies are waiting for the right opportunity.
Perhaps the opportunity has arrived.
Yesterday (September 22),Alibaba Local Services announced that China’s first “Medical Aesthetics Live Streaming Industry Demonstration Center” has been established in the Shezhuang Town of Wuhou District, Chengdu, Sichuan Province.It is reported that Alibaba Local Services will join forces with the Sichuan Provincial Department of Commerce, Taobao Live, MCN agencies, and leading medical aesthetic institutions across China, along with other key stakeholders in the industry ecosystem, to promote the diversified development of the live-streaming medical aesthetics sector by training and certifying professional medical aesthetic live streamers.
“Behind the livestreaming boom, medical aesthetic institutions are facing an intensifying demand for livestream shopping talent. To enable more medical aesthetic institutions to go ‘all in’ on livestreaming,”It is imperative to cultivate new talent and build a more comprehensive ecosystem..” Wang Yajun told VCBeat that cultivating live-streaming talent will become a new trend.
Recently, entrusted by the Ministry of Human Resources and Social Security, the China Employment Training Technical Instruction Center issued the “Announcement on Publicizing Information on Proposed New Professions.”Ten new occupations are proposed to be added, including the job category of "Live Streaming Salesperson."It is projected that the talent shortage in this occupation will exceed 1 million over the next five years.
The Medical Aesthetics Live Streaming Industry Demonstration Center’s training for live streamers not only covers fundamental courses in live streaming operations, but also includes advanced modules on persona development, user insight analysis, fan management, and the application of data analytics tools. Meanwhile, Alibaba Local Services University will collaborate with numerous merchants to provide streamers with ample practical scenarios.
“The establishment of this Medical Aesthetics Live Streaming Industry Demonstration Center represents a significant initiative through which we leverage our ecosystem advantages to empower traditional medical aesthetics institutions, more effectively promote the diversified development of the live streaming supply chain, and drive new growth in medical aesthetics consumption. By building on our accumulated strengths and going all-in on live streaming, we aim to achieve a new level of digital transformation in the medical aesthetics industry,” said Wang Yajun, General Manager of Alibaba’s Local Consumer Healthcare Division.
From the perspective of industrial ecosystem,The establishment of a demonstration center for the medical aesthetics live-streaming industry will facilitate win-win outcomes for all stakeholders.
Specifically, for live-streaming influencers, it will help them develop more comprehensive live-streaming skills and master the industry’s most cutting-edge operational strategies through hands-on, real-world practice, thereby enhancing their job prospects.
For medical aesthetics institutions, this demonstration center can empower staff and physicians alike, making it possible for everyone within the hospital to become live-streaming hosts who drive product sales, while also enabling these institutions to identify and cultivate high-quality talent.
For MCN agencies, the base will help them deepen their understanding of the medical aesthetics live-streaming niche, strengthen ties with medical aesthetics institutions, and attract more potential clients.
For local governments, demonstration centers can promote employment and invigorate the local e-commerce environment, thereby contributing to the development of a more robust new economy ecosystem.
For Alibaba, the demonstration center can strengthen its depth and influence in the vertical field of medical aesthetics, becoming an indispensable part of this ecosystem.
Just as the “All in” livestreaming has brought recovery and new growth to the post-pandemic medical aesthetics industry,The establishment of the Demonstration Center for the Medical Aesthetics Live-Streaming Industry will enable more medical aesthetics institutions and individuals to embrace digitalization and secure a foothold in the future live-streaming landscape.
As analyzed above, an increasing number of enterprises and institutions are embracing the trend of live-streaming in medical aesthetics, continuously contributing to the industry’s growth and unlocking new possibilities.
However, when confronting any emerging phenomenon, we must carefully dissect its underlying structure to gain insight into the direction of its evolution, thereby revealing the essence behind the trend. Setting aside the specific format of live streaming, we believe thatThe live streaming phenomenon represents five new trends shaping the future of the medical aesthetics industry.
First, the information (content) of medical aesthetic institutions is gradually moving online.As the integration of online and offline channels accelerates, the digital transformation of the medical aesthetics industry is also gaining momentum. This involves not only leveraging digitalization to comprehensively display medical aesthetics institutions’ information on the internet—enabling users to quickly verify institutional and physician credentials, review case studies, and assess historical reputation—but also humanizing these institutions’ online presence. This approach establishes effective touchpoints for connecting with users, thereby fostering strong user engagement and loyalty.
Second, with the development of the medical aesthetics industry, the industrial chain will give rise to more specialized career opportunities.Whether it is professional live-streamers in the medical aesthetics field or specialized operational teams, both are emerging career opportunities that have gradually evolved alongside the rising tide of the medical aesthetics industry. In the future, roles such as medical aesthetics experience specialists and private medical aesthetics consultants may also emerge amidst this upward trend.
Third, aesthetic standards in the medical aesthetics industry are gradually improving, and demand for aesthetic-related services is expected to increase in the future.Whether it is the increasingly discerning aesthetic demands of beauty-seeking consumers or the recent proliferation of appearance-assessment tools, both trends underscore the elevation of users’ aesthetic standards, which in turn imposes higher requirements on the professional competencies of practitioners in the medical aesthetics industry.
Fourth, the medical aesthetics industry will move toward differentiated competition.As the medical aesthetics industry gradually enters a mature phase, homogenization and price wars are bound to diminish. Seeking differentiated breakthroughs will become a key focus for medical aesthetics institutions, which in turn will strengthen their category focus and encourage more experimentation with innovative business models.
Fifth, as more industry giants enter the market, the ecosystem of the medical aesthetics sector will become increasingly diverse.As a significant branch of consumer healthcare, the medical aesthetics market offers immense growth potential. Coupled with its diverse offline service scenarios and high gross profit margins, this sector has garnered substantial attention from industry giants. In the future, as more major players establish a strong presence in medical aesthetics, the industry ecosystem is poised to become increasingly vibrant and diversified.
On the path of medical aesthetics, countless practitioners have basked in the spotlight during the industry’s boom times, while also enduring confusion, difficulties, and hardships in their quest for knowledge and growth.
Fortunately, countless industry professionals have remained undeterred, striving to identify optimal solutions for breakthroughs. By leveraging their respective strengths in collaboration with industry enablers such as Alibaba and local government agencies, they are jointly nurturing the industry’s nascent growth in the fertile soil of digitalization, with the expectation that time will bear witness to its eventual flourishing and fruitfulness.
We firmly believe that as an increasing number of medical aesthetic institutions go “all in” on live streaming and actively embrace digitalization, the medical aesthetics industry is bound to usher in a bright new future.